Bad loan menace: auditors come under lens of RBI 

Bad loan menace: auditors come under lens of RBI

Context

With the RBI cracking the whip on bad loans menace, more than three dozen chartered accountants (CAs) are under the scanner for allegedly conniving with promoters in defaulting as well as restructuring the stressed assets, sources said

What is RBI looking into?

The regulator is looking to ascertain whether these chartered accountants helped the entities in any illegal manner causing deliberate defaults and subsequently assisting them in restructuring the dud assets

Additional measures by SEBI
The Securities Exchange Board of India (SEBI) is looking to enhance oversight to check such frauds with new regulations for fiduciaries in the securities markets

  • It will require additional disclosure requirements and greater scrutiny of financial statements by auditors and other third party entities, he said. SEBI may finalise rules which will put the responsibility on chartered accountants, company secretaries, cost accountants, valuers and monitoring agencies to get firms to comply with securities regulations and act in the interests of shareholders
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